A Local Law to amend the administrative code of the city of New York, in relation to requiring the licensing of last-mile facilities

This local law, Int. No. 518, introduces a new licensing requirement for "last-mile facilities" in New York City. These facilities, which include warehouses and storage locations from which goods are delivered to consumers or transferred to sustainable transport, will now need a license from the Department of Consumer and Worker Protection. The law establishes definitions for terms like "facility operator," "core services," and "egregious misconduct." Key provisions include:

• Licensing Requirement: Operators must obtain an annual license costing $500 per location, valid for two years.
• Direct Employment: Facility operators must directly employ workers performing "core delivery services" and "core warehouse services," prohibiting most third-party contracting. Exceptions exist for contracts in place before the law's enactment, with extensions up to 24 months.
• Employee Retention: If a facility operator terminates a contract due to this law, they must offer to rehire terminated workers under the same terms.
• Worker Safety and Record-Keeping: Facility operators engaging contracted workers must maintain detailed records, ensure drivers display employer information, and post a $500,000 bond for non-employee drivers.
• Notice of Termination: Employees must receive at least 30 days' notice of termination, except for egregious misconduct.
• Anti-Retaliation: Prohibits facility operators from retaliating against employees for protected activities.
• Worker Training: Mandates training by a certified organization covering worker rights, safe driving, defensive driving, ergonomic practices, and hazard identification. Facility operators must pay for this annual training.
• Enforcement and Remedies: The Commissioner will enforce the law, with penalties including daily fines (e.g., $1,000 per day for certain violations) and remedies for workers such as reinstatement, lost wages, and damages. A private right of action is also established for workers.

The law takes effect 120 days after enactment, with specific provisions having different effective dates.

This law aims to improve working conditions and safety for delivery and warehouse workers in the "last-mile" logistics sector. Residents may see more stable and better-trained delivery personnel, and potentially fewer disruptions due to labor disputes. It could also lead to increased operational costs for businesses, which may be passed on to consumers.

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